Key Points

  • OpenRTB is the foundational protocol for programmatic advertising, while Open Bidding and Prebid are header bidding solutions that publishers can implement.
  • Open Bidding, Google's header bidding solution, offers seamless integration with Google Ad Manager and access to Google's demand partners, but with less transparency and customization.
  • Prebid, an open-source header bidding solution, provides more flexibility, a wider range of demand partners, and greater control, but requires more technical expertise to implement and maintain.
  • The choice between Open Bidding and Prebid depends on factors such as existing ad stack, technical capabilities, revenue goals, and user experience priorities.
  • A hybrid approach combining both Open Bidding and Prebid can maximize benefits, but may be complex to manage without expert assistance.

Ever feel like you're drowning in digital advertising jargon? You're not alone. Terms like OpenRTB, Open Bidding, and Prebid are tossed around in the ad tech world, often leaving people scratching their heads. But don't worry – we're here to clear things up. 

As a publisher, you're always looking for ways to squeeze more value out of your ad inventory. That's where these technologies come into play. They're not just buzzwords; they're powerful tools that can help you turn those ad impressions into real revenue. 

Let's break it down: 

  • OpenRTB (Open Real-Time Bidding) is the backbone of programmatic advertising. It's a standardized protocol that allows different ad tech platforms to communicate efficiently. 
  • Open Bidding, formerly known as Exchange Bidding, is Google's server-side header bidding solution. It's integrated with Google Ad Manager and allows multiple SSPs and ad exchanges to compete alongside Google's Ad Exchange in a unified auction. 
  • Prebid is an open-source header bidding solution that lets publishers offer their ad inventory to multiple demand partners simultaneously. It includes tools like Prebid.js for client-side auctions and Prebid Server for server-side auctions. 

These might sound similar, but each one plays a unique role in the programmatic advertising ecosystem. Understanding these differences can help you make more informed decisions about your ad strategy.

In this article, we're going to break it all down for you – what these technologies are, how they differ, and why they matter to you as a publisher. By the time we're done, you'll have a clear understanding and be ready to make decisions that can boost your ad revenue. 

So, let's dive in and demystify OpenRTB, Open Bidding, and Prebid together. Your future self (and your bottom line) will thank you for it!

What Are OpenRTB, Open Bidding and Prebid Anyway?

OpenRTB, Open Bidding, and Prebid play crucial roles in maximizing programmatic ad revenue for publishers. While these terms are easy to confuse, they represent distinct concepts and technologies that you’ll need to keep straight. 

Let's break down each one to understand their unique functions and how they relate to each other.

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  • What Is OpenRTB (Open Real-Time Bidding)?

    Let’s get this out of the way: Despite the similar-sounding name, OpenRTB is not a header bidding solution like Open Bidding or Prebid are. Instead, it's a standardized protocol that underpins much of the programmatic advertising ecosystem, including header bidding technologies. 

    Here's why it's often confused with header bidding solutions and how it differs:

    • Protocol vs. Solution: OpenRTB is a communication standard, not a technology you implement directly. It's the language that different ad tech platforms use to talk to each other efficiently.
    • Foundation vs. Tool: While Open Bidding and Prebid are tools publishers use to sell ad inventory, OpenRTB is the foundation that enables these tools to function effectively across different platforms.
    • Industry-Wide vs. Publisher-Specific: OpenRTB is used across the entire ad tech industry, whereas Open Bidding and Prebid are specific solutions that publishers choose to implement.

    Key features of OpenRTB include:

    • Standardized bid request and response formats
    • Support for various ad formats (display, video, native)
    • Ability to transmit user data for targeting purposes (within privacy regulations)
    • Continuous updates to address industry changes and new requirements

    Understanding OpenRTB's role helps clarify why it's mentioned alongside header bidding solutions. While you don't "choose" OpenRTB like you might choose between Open Bidding and Prebid, its standardization has significantly improved the efficiency of programmatic advertising, including header bidding processes. 

    What Is Open Bidding?

    Open Bidding, formerly known as Exchange Bidding, is Google's server-side header bidding solution. It's integrated with Google Ad Manager and allows multiple SSPs and ad exchanges to compete alongside Google's Ad Exchange in a unified auction. 

    Here's what makes Open Bidding stand out:

    • Server-side auctions that reduce latency and improve page load times
    • Seamless integration with Google Ad Manager
    • Access to Google's vast network of demand partners
    • Simplified setup and management compared to client-side solutions

    It's important to note that Open Bidding uses an implementation of OpenRTB as its underlying protocol for communication with demand partners. 

    While Open Bidding offers ease of use and strong performance, it comes with some trade-offs in terms of transparency and control compared to other solutions. Publishers generally  have less visibility into the bidding process and fewer options for customization.

    What Is Prebid?

    Prebid is an open-source header bidding solution that allows publishers to offer their ad inventory to multiple demand partners simultaneously. It's not just one tool, but a whole ecosystem designed to give publishers more control over their header bidding process. 

    Like Open Bidding, Prebid can use OpenRTB for communication with demand partners, especially in server-side implementations. This highlights how Prebid leverages OpenRTB without being a direct alternative to it. 

    By understanding these technologies and how they work together, publishers can make more informed decisions about their programmatic advertising strategy.

    What’s The Difference? Clarifying the Relationships Between Prebid, OpenRTB and Open Bidding

    Now that we've explored OpenRTB, Open Bidding, and Prebid individually, let's dive deeper into how these technologies interact within the programmatic advertising ecosystem. Understanding these relationships is crucial for publishers looking to optimize their ad strategies and make informed decisions about their tech stack.

    Prebid vs. OpenRTB: Partners in Programmatic

    While OpenRTB and Prebid might sound similar, they play distinct but complementary roles in the ad tech world. OpenRTB provides the language, while Prebid offers the infrastructure to conduct efficient auctions. 

    When a user visits a webpage that uses Prebid, it kicks off a header bidding auction. Prebid then sends out bid requests to multiple demand partners simultaneously, formatting these requests according to OpenRTB specifications. This standardization ensures that all potential buyers receive information in a format they can quickly process and respond to. 

    Key aspects of the OpenRTB-Prebid relationship:

    • Protocol Implementation: Prebid uses OpenRTB 2.5 for server-side auctions
    • Data Mapping: Prebid translates its internal structures into OpenRTB format
    • Bid Response Handling: OpenRTB responses are parsed back into Prebid's format
    • Auction Dynamics: Prebid's auction logic operates on standardized OpenRTB data

    For example, when you set up Prebid Server, it leverages OpenRTB to format bid requests sent to SSPs and DSPs. This standardization helps ensure all bidders receive consistent information, potentially leading to more accurate bids and higher CPMs for your ad inventory.

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    Open Bidding vs. Prebid: Two Paths to Header Bidding

    While both Open Bidding and Prebid aim to improve header bidding, they take different approaches to achieve this goal. Open Bidding is Google's server-side solution tightly integrated with Google Ad Manager, while Prebid offers both client-side and server-side options with more flexibility. 

    Key differences between Open Bidding and Prebid:

    • Auction Timing: Open Bidding runs simultaneously with Google Ad Manager; Prebid typically runs before the ad server call
    • Integration Complexity: Prebid requires more setup; Open Bidding offers simpler integration
    • Analytics and Reporting: Prebid provides more granular insights; Open Bidding integrates with Google Ad Manager reporting
    • Demand Access: Open Bidding connects primarily with Google partners; Prebid offers a wider range of independent exchanges

    Consider a scenario where you're running a mid-sized news website. You might use Prebid.js to manage your display ad inventory, taking advantage of its flexibility and wide range of demand partners. Simultaneously, you could leverage Open Bidding for your video inventory, benefiting from its seamless integration with Google Ad Manager and potentially faster load times for resource-heavy video ads.

    OpenRTB vs. Open Bidding: Standards Meet Implementation

    While OpenRTB and Open Bidding might sound similar, their roles in the ad tech ecosystem are quite different. As we discussed earlier, OpenRTB is an industry-wide protocol, while Open Bidding is a specific product from Google that implements this protocol. 

    Key points about OpenRTB and Open Bidding:

    • Protocol Usage: Open Bidding uses OpenRTB as its underlying communication protocol
    • Version Support: Open Bidding supports OpenRTB 3.0
    • Custom Fields: Open Bidding allows some OpenRTB extensions, but with more restrictions than direct implementations
    • Accessibility: Any ad tech company can implement OpenRTB; Open Bidding is Google-specific

    When you use Open Bidding, the bid requests sent to participating demand partners are formatted according to OpenRTB specifications. This standardization allows for efficient, real-time communication between Google Ad Manager and various SSPs or ad exchanges. 

    By understanding these relationships, you can make more informed decisions about which technologies to implement in your ad stack. Remember, there's no one-size-fits-all solution – the best approach often involves a strategic combination of these technologies, tailored to your specific needs and goals.

    Practical Considerations for Publishers

    As you weigh your options between Open Bidding and Prebid, it's crucial to consider how each solution aligns with your business goals, technical capabilities, and user experience priorities. Let's break down these considerations into three key areas:

    Business Considerations

    When it comes to the bottom line, both Open Bidding and Prebid offer unique advantages. However, their approaches differ in ways that could significantly impact your revenue potential and operational efficiency. 

    Open Bidding, being a Google product, provides seamless access to Google's vast network of premium advertisers. This can be particularly beneficial if you're already deeply integrated with Google's ad ecosystem. On the other hand, Prebid's open-source nature opens doors to a wider range of demand partners - over 250 at last count. 

    Here are some key business factors to consider:

    • Revenue Potential: Prebid typically offers access to a broader range of demand partners, potentially leading to higher competition and better CPMs. Open Bidding, while more limited, provides access to Google's high-quality demand.
    • Control and Transparency: Prebid's open-source nature allows for greater customization and insight into the bidding process. Open Bidding offers less granular control but simplifies operations through Google Ad Manager integration.
    • Cost Considerations: While both solutions are free to implement, Prebid may require more resources for setup and maintenance. Open Bidding's costs are mainly tied to Google Ad Manager fees.

    Consider your current ad stack and relationships with demand partners. If you're heavily invested in the Google ecosystem, Open Bidding might offer a smoother transition. However, if you're looking to diversify your demand sources and have the resources to manage a more complex setup, Prebid could potentially drive higher revenues.

    Technical Considerations

    The technical aspects of implementing and maintaining your chosen solution can have a significant impact on your team's workload and your site's performance. Let's explore how Open Bidding and Prebid differ in this regard. 

    Open Bidding, being a Google product, is designed to integrate seamlessly with Google Ad Manager. This can significantly simplify the setup process, especially if you're already using Google's ad tech stack. Prebid, while offering more flexibility, requires more technical expertise to implement and maintain effectively. 

    Here are the key technical factors to weigh:

    • Implementation Complexity: Open Bidding is generally easier to set up, especially for publishers already using Google Ad Manager. Prebid requires more technical expertise but offers greater flexibility.
    • Scalability: Prebid's server-side solution can handle a large number of bidders without impacting page performance. Open Bidding's scalability is tied to Google's infrastructure.
    • Integration with Existing Systems: Open Bidding integrates seamlessly with Google Ad Manager. Prebid can work with various ad servers but may require additional configuration.

    Consider your team's technical capabilities and resources. If you have a dedicated ad ops team with strong technical skills, Prebid's flexibility might be worth the additional complexity. For smaller teams or those looking for a more turnkey solution, Open Bidding's simplicity could be a better fit.

    User Experience Considerations

    User experience can make or break your site's success. Both Open Bidding and Prebid offer features designed to balance ad monetization with user satisfaction, but their approaches differ. 

    Open Bidding's server-side approach can lead to faster page loads, which is crucial for maintaining a positive user experience. Prebid.js, a client-side implementation, may have a more noticeable impact on page load times, especially when working with many demand partners. However, using Prebid Server can mitigate this difference. 

    Here are the key user experience factors to consider:

    • Page Load Times: Open Bidding's server-side approach can lead to faster page loads compared to client-side Prebid implementations. However, Prebid Server can mitigate this difference.
    • Ad Relevance: Prebid's wider range of demand partners may result in more diverse and potentially more relevant ads. Open Bidding leverages Google's advanced targeting capabilities.
    • Privacy and Data Usage: Both solutions offer tools for privacy compliance, but Prebid's open-source nature allows for more customization in how user data is handled.

    You’ll also want to consider your audience's expectations and your site's performance requirements. Both solutions offer server-side options that can improve page load times, but they differ in their approaches to ad relevance and privacy. Prebid's wider range of demand partners may lead to more diverse ad content, while Open Bidding leverages Google's advanced targeting capabilities. In terms of privacy, both offer compliance tools, but Prebid's open-source nature allows for more customization. 

    Ultimately, the best choice depends on your specific audience needs, site performance requirements, and privacy considerations. Many publishers find success with a hybrid approach, balancing the strengths of both solutions to optimize user experience and revenue potential.

    A Hybrid Approach: Get The Best of Both Worlds with Playwire

    While both Open Bidding and Prebid offer distinct advantages, many publishers find that a hybrid approach yields the best results. However, implementing and managing a hybrid solution can be complex and resource-intensive. This is where Playwire comes in. 

    Playwire offers a managed solution that allows publishers to leverage the benefits of both Open Bidding and Prebid without the technical headaches. 

    Here's how Playwire can help:

    • Expertise: Playwire's team of ad tech experts can implement and optimize a hybrid setup tailored to your specific needs.
    • Revenue Maximization: By combining Open Bidding and Prebid, Playwire ensures you're getting the highest possible bids from a wide range of demand sources.
    • Simplified Management: Instead of juggling multiple systems, you get a single point of contact for all your header bidding needs.
    • Ongoing Optimization: Playwire continuously monitors and adjusts your setup to adapt to market changes and maximize performance.
    • Technical Support: Leave the complex technical details to Playwire while you focus on creating great content for your audience.

    With Playwire, you can enjoy the increased competition and higher CPMs of Prebid alongside the simplicity and Google integration of Open Bidding, all without the burden of in-house implementation and management.

    Make a Bigger Programmatic Ad Impact with Playwire

    OpenRTB, Open Bidding, and Prebid each play crucial roles in programmatic advertising. While OpenRTB serves as the foundational protocol, Open Bidding and Prebid are header bidding solutions that help publishers maximize their ad revenue. 

    As you consider using Open Bidding and Prebid, think about how each one aligns with your specific needs:

    • Open Bidding offers seamless integration with Google Ad Manager and leverages Google's targeting capabilities.
    • Prebid provides more flexibility, a wider range of demand partners, and greater customization options.

    Many publishers find success with a hybrid approach, balancing the strengths of both to optimize user experience and revenue potential. Implementing and managing these technologies can be complex, requiring ongoing optimization and technical expertise. 

    That's where partnering with a managed service provider like Playwire can be invaluable. We can help you navigate the intricacies of programmatic advertising, allowing you to focus on creating great content for your audience. Contact us today to learn more about how Playwire can help you sharpen your digital advertising strategy.

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